High APY Checking

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Topic Author
ProfWengen
Posts: 20
Joined: Sat Oct 06, 2018 9:15 pm

High APY Checking

Post by ProfWengen »

Can anyone recommend a good bank that offers high APY checking?

Short term interest rates have risen a lot over the past couple years, but the interest on my checking account hasn't. I think it is a good time to switch banks and start making some interest on the balance I'm holding. I've looked into Ally, but we got off to a bad start and they're just not going to work. There's no shortage of online banks offering a good interest rate, but I've never heard of them before and I'm not sure who's really trustworthy.
boglerdude
Posts: 928
Joined: Fri Jul 10, 2015 1:28 am

Re: High APY Checking

Post by boglerdude »

Consumers Credit Union 4.59% APY On Up To $20k. Hoops to jump through.

https://www.doctorofcredit.com/consumer ... -checking/
Momus
Posts: 1023
Joined: Tue Feb 21, 2012 8:23 pm

Re: High APY Checking

Post by Momus »

boglerdude wrote: Mon Oct 15, 2018 12:51 am Consumers Credit Union 4.59% APY On Up To $20k. Hoops to jump through.

https://www.doctorofcredit.com/consumer ... -checking/
12 debit transaction a deal breaker... Unless you wanna frequent Walmart once a month and use its self check out stand, and make 12 separate transactions.

1000 credit card spend... Bad
Must visit online bank once a month - even worse... We use mint so we don't have to do this ever.

Hard pass
patrick
Posts: 2594
Joined: Fri Sep 04, 2009 3:39 am
Location: Mega-City One

Re: High APY Checking

Post by patrick »

boglerdude wrote: Mon Oct 15, 2018 12:51 am Consumers Credit Union 4.59% APY On Up To $20k. Hoops to jump through.

https://www.doctorofcredit.com/consumer ... -checking/
You have inadvertently pointed out the main problem with this kind of account -- you have to constantly watch for changes to the rules. Starting at the beginning of this month, the CCU limit was reduced to $10k although the interest rate increased to 5.09%. They also added a $100 minimum to the debit card purchases in addition to the $1000 minimum in credit card purchases to qualify for the high interest rate.

I think the best current offer is probably Heritage Bank NA . They only pay 3.33%, but their account cap is $25k and they only require 10 debit purchases and don't require credit card purchases at all.
sport
Posts: 12094
Joined: Tue Feb 27, 2007 2:26 pm
Location: Cleveland, OH

Re: High APY Checking

Post by sport »

My bank does the same thing with interest rates. So, I keep just enough in the checking account to cover expenses. Anything more than that I keep in a money market fund at Vanguard. I can transfer money between Vanguard and the checking account with a few clicks of the mouse (in either direction). It takes a day or two for transfers to be complete.
MichCPA
Posts: 884
Joined: Fri Jul 06, 2018 9:06 pm

Re: High APY Checking

Post by MichCPA »

patrick wrote: Mon Oct 15, 2018 10:19 am
boglerdude wrote: Mon Oct 15, 2018 12:51 am Consumers Credit Union 4.59% APY On Up To $20k. Hoops to jump through.

https://www.doctorofcredit.com/consumer ... -checking/
You have inadvertently pointed out the main problem with this kind of account -- you have to constantly watch for changes to the rules. Starting at the beginning of this month, the CCU limit was reduced to $10k although the interest rate increased to 5.09%. They also added a $100 minimum to the debit card purchases in addition to the $1000 minimum in credit card purchases to qualify for the high interest rate.

I think the best current offer is probably Heritage Bank NA . They only pay 3.33%, but their account cap is $25k and they only require 10 debit purchases and don't require credit card purchases at all.
This is a total gotcha product I would have expected from a Mega bank. The debit card requirement stinks because you lose out on CC rewards. The $1,100 of required purchases would represent a pretty significant chunk of all of the spending I can put on cards without paying fees. You can get 3% or more on up to 15K with 10 swipes of a credit or debit card at Lake Michigan Credit Union and there are similar offers in other places. The incremental $50-100/yr isn't worth the hassle.
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NORDO
Posts: 155
Joined: Fri Apr 20, 2012 9:03 am

Re: High APY Checking

Post by NORDO »

We've been very happy with Alliant Credit Union as our primary bank for years now.

Currently paying 0.65% on checking and 1.90% on savings.

No fees for either account. Quick ACH. Easy mobile/online check deposit up to $50K. Refund up to $20 in ATM fees every month (though they have a giant network of fee-free ones you can use, too). Great customer service.

They don't always have the absolute highest rates, but I've never once considered chasing an extra 0.10% because Alliant has always checked all the boxes best overall.

Really solid all-around... you'll see others on here have recommended them in the past, too.
Last edited by NORDO on Mon Oct 15, 2018 11:23 am, edited 2 times in total.
UniversityEmployee9
Posts: 106
Joined: Wed Mar 18, 2015 10:01 am

Re: High APY Checking

Post by UniversityEmployee9 »

NORDO wrote: Mon Oct 15, 2018 11:20 am We've been very happy with Alliant Credit Union as our primary bank for years now.

Currently paying 0.65% on checking and 1.90% on savings. No fees for either account. Quick ACH. Great customer service. Really solid all-around... you'll see others on here have recommended them in the past, too.
Was going to post exactly this myself. Can't complain about Alliant at all. And yes, the ACH is very quick, and mobile deposits for me are always credited immediately.
TheDDC
Posts: 1612
Joined: Mon Jan 08, 2018 10:11 am

Re: High APY Checking

Post by TheDDC »

Momus wrote: Mon Oct 15, 2018 1:10 am
boglerdude wrote: Mon Oct 15, 2018 12:51 am Consumers Credit Union 4.59% APY On Up To $20k. Hoops to jump through.

https://www.doctorofcredit.com/consumer ... -checking/
12 debit transaction a deal breaker... Unless you wanna frequent Walmart once a month and use its self check out stand, and make 12 separate transactions.

1000 credit card spend... Bad
Must visit online bank once a month - even worse... We use mint so we don't have to do this ever.

Hard pass
12 debits = 12 x .50 Amazon gift card balance reloads via credit card. I do this for one of my high yield (2.01% APY) checking accounts. If you already spend at least $6/mo. average on Amazon purchases it's a no brainer.

-TheDDC
Last edited by TheDDC on Mon Oct 29, 2018 9:16 am, edited 1 time in total.
Rules to wealth building: 75-80% VTSAX piled high and deep, 20-25% VTIAX, 0% given away to banks.
Topic Author
ProfWengen
Posts: 20
Joined: Sat Oct 06, 2018 9:15 pm

Re: High APY Checking

Post by ProfWengen »

Thanks for the feedback everyone! :happy
tj
Posts: 9368
Joined: Wed Dec 23, 2009 11:10 pm

Re: High APY Checking

Post by tj »

Alliant Credit Union and Ally Bank are most commonly recommended.
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